Families lose £200 a month in universal credit switch

Esther McVey, the work and pensions secretary, has privately admitted to cabinet colleagues that families are losing out under the schemeCHRISTOPHER FURLONG/GETTY IMAGES

Ministers are becoming increasingly alarmed about the rollout of universal credit after Esther McVey, the work and pensions secretary, confirmed privately to colleagues that millions of families would lose £200 a month under the new system.

Ms McVey told cabinet colleagues that half of lone parents and about two thirds of working-age couples with children would lose the equivalent of £2,400 a year.

The revelation will add to Tory angst about universal credit, which is being introduced in stages nationwide to replace existing benefits including tax credits and housing benefit.

The Treasury is expected to publish a consultation in the next few weeks about giving “breathing space” to people on low incomes who are in debt, partly as a result of universal credit.

Ministers are…

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